The title is more funny than the idea really is. It looks like with an updated EyeToy, the PS3 could have the power to do some great things, including making your whole body an even better controller than it was with the PS2.
Playstation 3 News has the details:
We all remember Sony’s liberal use of the term “Emotion Engine,” which was supposed to describe the PS2’s graphics chip. This latest Cell demonstration suggests that the PS3 chip has the potential to actually live up to that expectation. Imagine if the Cell, coupled with an upgraded EyeToy, could read our facial expressions, and use them to influence the direction of a game—or at the least, track our physical movements, so that our hands (or even entire bodies) became the controllers. Sure, the EyeToy already works like this, but with the Cell’s increased processing power, the PS3 could be giving Nintendo’s revolutionary concept a run for its money.